India Becomes World Top Ship Recycling Nation in 2025

#GS-3 #Economy #Infrastructure #Current Events #National #Gujarat

Why in News

According to the United Nations Conference on Trade and Development (UNCTAD) report, India secured the top global spot in ship recycling for 2025 by capturing 35.4% of the worldwide market share.

This maritime success stems from smart policy reforms and better ease of doing business measures.
India transformed its ship breaking sector into a global center for safe, green, and large-scale recycling operations.

The Ministry of Ports, Shipping and Waterways (MoPSW) launched several targeted programs to build a sustainable maritime network.
India enacted the Recycling of Ships Act, 2019, to match domestic standards with the Hong Kong International Convention for the Safe and Environmentally Sound Recycling of Ships (HKC).
The government distributed ₹53.5 crore as financial aid to modernize and certify domestic ship recycling yards.
Officials introduced the Ship-breaking Credit Note Scheme to give ship owners a credit note worth 40% of scrap value.
Ship owners can use this credit note to cut up to 5% of the cost when building a new ship at an Indian yard.
India is also talking with European authorities to add local yards to the European Union Ship Recycling Regulations (EUSRR) approved list.

Indian facilities recycled 9.9 million gross tons (GT) of shipping volume in 2025.
This volume shows a huge 60% growth compared to the 1.86 million GT recorded in 2024.
India increased its global market share from 30.1% in 2024 to 35.4% in 2025, leaving behind all global rivals.
Financial support helped 115 domestic facilities meet strict green HKC safety standards.
The Government of Gujarat created a master plan to expand the Alang Ship Recycling Yard.
This plan aims to nearly double local capacity to 9 million light displacement tons (LDT).
The country set up strong coordination between the MoPSW, Gujarat Maritime Board, cash buyers, and the Ship Recycling Industries Association.